MB,Hard not to be happy with the outlook. Revenue, EBIT and...

MB,

Hard not to be happy with the outlook. Revenue, EBIT and margin growth as far as the eye can see.

On the cash side they have said that over the next 12 months they will put in place a capital management plan. That suggest to me that we will probably see some form of dividend or buy back next year.

In terms of the outlook it seems like we are set for over US$50 million in revenue this financial year. 1/6 of the way through the financial year and we are already at US$ 36.3 million (28.8 in backlog to be recognized and 6 from the large phase II and I would reckon another 1.5 from the other contracts that were included in yesterdays announcement that were not phase II). Another US$ 15 million in revenue contracted and recognized this year should not be a huge stretch (see the historical guide bullet point on page 26 of the preso).

To Mindfu's point, while I think it is reasonable to raise the point of executive pay, especially when they where they were hemorrhaging cash in previous years, I don't agree about the competence of management. I think they have been excellent they have made sure that the business is in a dominant and leading position in market/sector that has decades of structural growth ahead of it. They saw the future and stuck to their guns even when the market was telling them they did not believe in that vision. Brad in particular has been very consistent and persistent in providing his views about the transformative potential of Cognigram and that an approved disease modifying therapy was necessary to unleash its potential. This was even after the initial (and expensive) failure of trying to sell it directly.

It would seem that contractually Eisai have about 45 days before they need to launch Cognigram commercially in to the US market. I would expect to see plenty of positive newsflow around this.